Australia's Graincorp first-half profit soars five-fold, pays special dividend (updated)
10/05/2022 23:56
(Adds details of results, CEO comment, new venture capital
fund)
May 11 (Reuters) - Australia's Graincorp Ltd GNC.AX
reported an about five-fold jump in first-half profit and
declared a special dividend on Wednesday, helped by soaring
prices and demand for grains amid global supply constraints due
to the conflict in Ukraine.
Demand for Australian food grain and oilseed skyrocketed as
trade disruptions near the Black Sea affected supplies from
major exporters Russia and Ukraine, forcing buyers to look at
alternate sources of supply.
"Global demand for Australian grain, oilseeds, and vegetable
oils has remained elevated, after two consecutive bumper crops
in east coast Australia and during a period of tight global
supply" Chief Executive Officer Robert Spurway said in a
statement.
The agribusiness firm said net profit attributable was A$246
million ($170.58 million) for the six months ended March,
compared with A$51 million a year ago.
Graincorp declared an interim dividend of 12 Australian
cents per share, up from 8 cents a year earlier, and also
declared a special dividend of 12 Australian cents per share.
The company also confirmed its annual profit forecast of
between A$310 million and A$370 million, issued last month.
New South Wales-based Graincorp also launched a A$30 million
corporate venture capital fund to invest in agricultural
technology start-ups.
($1 = 1.4422 Australian dollars)
(Reporting by Navya Mittal and Jaskiran Singh in Bengaluru;
Editing by Shailesh Kuber)
((Navya.mittal@thomsonreuters.com;
Jaskiran.Singh@thomsonreuters.com))